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The news from the recent St. Petersburg Economic Forum, which took place from June 18 to 20, inspired a torrent of speculation on the future direction of energy prices.

But the real buzz at the conference was the unexpected but much publicized visit of the Saudi Deputy Crown Prince, as an emissary of the King. The Prince, who is also his country’s Defense Minister, carried the royal message of a direct invitation to President Putin to visit the King, which was immediately accepted and reciprocated, with the Prince accepting on behalf of his father.

It would be news enough that the unusually high level delegation from a long-time ally and protectorate of the U.S., like Saudi Arabia, was visiting a Russian sponsored economic conference, in a country sanctioned by the U.S.

Some saw this well publicized meeting as the first sign of an emerging partnership between the two greatest global oil producers. If the warmth of the meeting was any evidence, it seems likely that Russia, a non-OPEC producer, might come a lot closer to the fold.

That could mean that, at the very least, Russia would have a voice in the cartel’s policy decisions on production. And if so, it would be a voice on the side of stable but rising prices.

The great Indian journalist, M.K. Bhadrakumar (MKB), may have been the first to point out that there was plenty of reasons for the Saudis and Russians to come closer together. Among these are the U.S.’ diminishing dependence on Middle Eastern energy, due to the momentous development of shale resources. There’s also the over-riding goal of the U.S. to pivot toward the East, where a huge economic transformation is unfolding, while reducing the U.S. role in the Middle East. It’s clear that the Saudis are going to have to make new friends.

MKB also makes the point that although the Saudis are wildly opposed to any form of U.S. entente with Iran, the clear-eyed Kremlin understands that there are many temptations for its erstwhile ally, Iran, to move much closer to the West.

Pepe Escobar of Asia Times saw the Prince’s visit as harboring the first glimmer of light in ending the current global oil trade war, in which the Saudi’s might turn down the spigot and lower production, enabling prices to rise: “Facts on the ground included Russia and Saudi Arabia’s oil ministers discussing a broad cooperation agreement; the signing of six nuclear technology agreements; and the Supreme Imponderable; Putin and the deputy crown prince discussing oil prices. Could this be the end of the Saudi-led oil price war?”

Bullish oil traders thought they found some hope in the words of Ali al-Naimi, the famous and longtime President and CEO of the Saudi National Oil Company, Aramco, and current oil minister. Naimi publicly stated: “I am optimistic about the future of the market in the coming months in terms of the continuing improvement and increasing global demand for oil as well as the low level of commercial inventories.” This, the minister said, should lead to higher oil prices by year’s end.

Ali al-Naimi publicly praised the enhanced bilateral cooperation between Riyadh and Moscow, stating that, “[t]his, in turn, will lead to creating a petroleum alliance between the two countries for the benefit of the international oil market…”

This could be music to the ears of oil price bulls. But more skeptical minds were quick to clamp down excessive optimism. “Of course, we shouldn’t read into any new developments outside political frameworks, because I can hardly imagine that Saudi Arabia has decided to turn against its alliances—but it probably wants to get out of the narrow US corner and expand its options,” Abdulrahman Al-Rashed, the General Manager of Al Arabiya News Channel, wrote in a column after the summit.

The two sides also plan on setting up working groups to study other possible energy joint ventures in Russia. Russia also agreed to the construction of railways and metro subways for the Saudis. Russia is also believed to have agreed to supply advanced military defense equipment to the Kingdom, despite the Saudis being long time arms customers of both the UK and U.S.

However there is quite a bit of doubt that the U.S. is ready to just step aside and be replaced by Russia as the Saudis’ main ally. Saudi Arabia and Russia are on opposite sides on a range of geopolitical issues, including Iran, Syria, and Yemen. These conflicts will likely put a limit on any potential entente.

Also, there is serious doubt as to whether it is so simple for the Saudis to raise oil prices. Flooding the markets with oil to crash prices only requires the Saudis to over-produce by some one and a half million barrels of oil per day, easily within their grasp, and something the Saudis can do on their own.

Bringing prices up is a different story, requiring global oil producers to comply in oil cutbacks.

At the same time, rising prices are a clear signal to global producers to increase production, worsening the current glut, so that any price increase may prove to be temporary.

And yet, the fact is prices have been rising since the first of the year, and many are convinced there is more to go. C. DeHaemmer, a well-known energy newsletter writer, is now predicting a price rise by WTI to a range of $73-$78, and a Brent range of $82-85, by years end. Not impossible, but long term, the issue becomes cloudier.

On a different matter, there was another surprise announcement at the forum, with India, a longtime U.S. ally, confirming that it will sign a free trade agreement with the Eurasian Economic Union (EEU), a Russian-led trade bloc including Belarus and Kazakhstan.

Russia and China have agreed on making the EEU a central part of the Chinese sponsored Silk Road, so by default, it would appear that India is moving towards joining the grand Chinese project.

As has become standard at the St. Petersburg Forum, a number of energy deals were signed, including a BP deal to buy a major stake in a Siberian oil field owned by Rosneft, a company suffering under international sanctions. BP, as a twenty percent stakeholder in Rosneft, says it is seeking to expand on its joint ventures with the Russian company

Another deal was signed with Gazprom to build a second pipeline under the Baltic, following the path of Nordstream to Germany, in partnership with Royal Dutch Shell, Germany’s E.ON, and Austria’s OMV. Apparently, Western Europe’s oil giants find Russian sanctions to be no hindrance in dealing with Russian energy companies.

After his onstage TV interview with Putin, Charlie Rose, the well-known TV celebrity, was asked why he had decided to become a moderator at the Forum. He said, “I believe it’s important to talk to people.”

In the meantime, the U.S. reporter, with camera man in tow, found nothing of interest to report at the conference.

In recent days, Barack Obama has been cozy with the president of Afghanistan, Ghani granted him the favor of extending the deployments of troops in the Afghan theater. Ashraf Ghani is visiting the White House and giving a speech to Congress that is full of gratitude for the United States commitment to the country.

This raises Obama’s reputation in dealing with foreign affairs, but does it really? When applied to matters in the Middle East, the Far East and Europe, his attention to nurturing those relationships continue to dive.

The NATO General Secretary, Jens Stoltenberg is in town for 3 days to deal with the crisis in Ukraine that is spilling over to Europe, the Baltic States and Ukraine. Obama has no time to meet with him, zero. The question is why?

President Barack Obama has yet to meet with the new head of the North Atlantic Treaty Organization, and won’t see Secretary General Jens Stoltenberg this week, even though he is in Washington for three days. Stoltenberg’s office requested a meeting with Obama well in advance of the visit, but never heard anything from the White House, two sources close to the NATO chief told me.

The leaders of almost all the other 28 NATO member countries have made time for Stoltenberg since he took over the world’s largest military alliance in October. Stoltenberg, twice the prime minister of Norway, met Monday with Canadian Prime Minister Stephen Harper in Ottawa to discuss the threat of the Islamic State and the crisis in Ukraine, two issues near the top of Obama’s agenda.

Kurt Volker, who served as the U.S. permanent representative to NATO under both President George W. Bush and Obama, said the president broke a long tradition. “The Bush administration held a firm line that if the NATO secretary general came to town, he would be seen by the president … so as not to diminish his stature or authority,” he told me.

America’s commitment to defend its NATO allies is its biggest treaty obligation, said Volker, adding that European security is at its most perilous moment since the Cold War. Russia has moved troops and weapons into eastern Ukraine, annexed Crimea, placed nuclear-capable missiles in striking distance of NATO allies, flown strategic-bomber mock runs in the North Atlantic, practiced attack approaches on the U.K. and Sweden, and this week threatened to aim nuclear missiles at Denmark’s warships.
“It is hard for me to believe that the president of the United States has not found the time to meet with the current secretary general of NATO given the magnitude of what this implies, and the responsibilities of his office,” Volker said.

Bernadette Meehan, a spokeswoman for the National Security Council, declined to say why Obama didn’t respond to Stoltenberg’s request. “We don’t have any meetings to announce at this time,” she told me in a statement. Sources told me that Stoltenberg was able to arrange a last-minute meeting with Defense Secretary Ashton Carter.

According to White House press releases, Obama didn’t exactly have a packed schedule. On Tuesday, he held important meetings and a press conference with Afghan President Ashraf Ghani at the White House (Ghani will meet with Stoltenberg while they are both in town). But the only event on Obama’s public schedule for Wednesday is a short speech to kick off a meeting related to the Affordable Care Act. On Thursday, he will head to Alabama to give a speech about the economy.

Stoltenberg is in town primarily for the NATO Transformation Seminar, a once-a-year strategic brainstorming session that brings together NATO’s leadership with experts and top officials from the host country. The event is organized by the Allied Command Transformation in Norfolk, Virginia, and the Atlantic Council.

“The focus of this year’s seminar is to think through how best to update NATO’s strategy given real threats in the east and the south, against the backdrop of a dramatically changing world,” said Damon Wilson, a former NSC senior director for Europe who is now with the Atlantic Council. “The practical focus is to begin developing the road map to the next NATO summit, which will take place in Warsaw in July 2016, a summit which will presumably be the capstone and last summit for the Obama administration.”

Last year, the seminar was hosted in Paris, and then-NATO Secretary General Anders Fogh Rasmussen got a separate bilateral meeting with President Francois Hollande of France.

Last Friday, at the German Marshall Fund Brussels Forum, Stoltenberg talked about the importance of close coordination inside NATO in order to first confront Russian aggression and then eventually move toward a stable relationship with Moscow.

“The only way we can have the confidence to engage with Russia,” he said, “is to have the confidence and the strength which is provided by strong collective defense, the NATO alliance.”

Polish President Bronislaw Komorowski told the Brussels Forum that there has been a worrisome lag between NATO’s promises of more defensive equipment for Poland and what has actually arrived, a blow to the alliance’s credibility. “It’s very important and necessary for everyone to have the conviction, including the potential aggressor to have this conviction, that NATO is truly determined to execute contingency plans,” he said.

The White House missed a perfect opportunity to reinforce that message this week in snubbing Stoltenberg. It fits into a narrative pushed by Obama critics that he would rather meet with problematic leaders such as Iraqi Prime Minister Haider al-Abadi, who will get an Oval Office meeting next month, than firm allies. The message Russian President Vladimir Putin will take away is that the White House-NATO relationship is rocky, and he will be right.

*** Putin is taking full advantage of this neglect and the means by which it plays out does not have a positive result. When it comes to Ukraine, we are bound by a long standing agreement to support and protect the country, to date that has not happened. Ukraine is working to increase the size of its forces against continued Russian aggression. Obama has refused to tend to the relationship with Poland. As a gesture, we have deployed 4 A-10’s to Poland. Even the country of Georgia is at risk of Russian juggernaut.

MOSCOW — President Vladimir Putin said Tuesday that a recent Russian military exercise has marked the beginning of a series of such drills this year, a show of force that comes amid a bitter strain with the West over Ukraine.

Reflecting the tensions, U.S. and other NATO forces staged maneuvers in the Baltics, and a convoy of U.S. troops has driven through eastern Europe in a bid to reassure the allies.

Last week’s Russian maneuvers that spread from the Arctic to the Black Sea involved 80,000 troops, about 100 navy ships and more than 220 aircraft.

Defense Minister Sergei Shoigu reported to Putin Tuesday that the maneuvers were aimed at checking the readiness of the newly formed group of forces in the Arctic, as well as the military’s capability to quickly field troops to several theaters of operations.

“I proceed from the assumption that this was just the start of efforts to train the armed forces,” Putin said.

As part of the drills, the state-of-the art Iskander missiles were deployed to Russia’s westernmost exclave of Kaliningrad bordering NATO members Poland and Lithuania, and long-range, nuclear-capable Tu-22M3 bombers were sent to Crimea, the Black Sea peninsula Russia annexed from Ukraine a year ago.

The move was intended to demonstrate Russia’s readiness to raise the ante amid a bitter strain in relations with the West, but for now the Kremlin apparently has stopped short of making the deployment permanent.

Shoigu reported to Putin that all troops involved in the maneuvers have returned to their home bases.

Asked specifically if the Iskander missiles also had returned to their location, Putin’s spokesman Dmitry Peskov referred to Shoigu’s statement in comments carried by Russian news agencies.

Even though the latest maneuvers ended last week, the Russian military continued their training.

NATO said it scrambled Danish and Italian jets based in Lithuania early Tuesday to escort four Russian military jets flying with their transponders switched off in international airspace over the Baltic Sea. The alliance said the Russian planes were heading to Kaliningrad.